Prime Resins, with annual net sales of about $7 million, is expected to contribute to RPM's earnings within one year.
CLEVELAND, Ohio -- RPM International Inc. has acquired Prime Resins, a Georgia-based manufacturer of special chemicals and equipment used to construct and repair infrastructure from sidewalks to sea walls, for an undisclosed sum.
Prime Resins, based in Conyers, Georgia, just east of Atlanta, has annual net sales of about $7 million. It is expected to contribute to RPM's earnings within one year.
Prime Resins makes a wide variety of polyurethane and epoxy grouts, foams, adhesives and coatings used primarily to seal leaks, repair concrete structures, lift slabs, and stabilize soil. Its products are used in highways, roads, bridges, airport runways, sewage systems, and retaining walls.
This is the fourth acquisition announced within the past three weeks by RPM, a Medina County-based holding company whose subsidiaries manufacture and market high-performance coatings, sealants, building materials and specialty chemicals. The four companies have combined annual net sales of $109 million.
Prime Resins will become part of RPM's USL Group, a United Kingdom-based company that makes coatings, products, and services for the infrastructure projects around the world, including roads, bridges, and car parks.
"Prime Resins will operate within our USL Group of companies and will continue to be led by its founder and president, David Barton," RPM Chairman and Chief Executive Frank C. Sullivan said in a statement.
He said RPM will use Prime Resins' sales force to bring more of USL's products to the U.S. infrastructure market, and use RPM's raw materials purchasing network to make Prime Resins more profitable.
RPM announced the acquisition before the markets opened on Tuesday. RPM's shares declined 2 percent to close at $51.65 per share, down 90 cents from Friday's close of $52.55.
RPM's other recent acquisitions are:
-- The foam division of Clayton Corp., best known for its Touch 'N Foam consumer polyurethane foam, based in Fenton, Missouri, near St. Louis, with annual net sales of about $60 million.
-- Prochem, a manufacturer of commercial floor-cleaning equipment and professional-grade cleaning chemicals (detergents, shampoos and deodorizers) for cleaning and restoring carpet, upholstery and hard floors. Prochem, based in Chandler, Arizona, has annual net sales of about $22 million.
-- RPM also bought 80 percent of Arnette Polymers LLC, a manufacturer of specialty resins, hardeners, curing agents and other intermediates used in epoxy and polyurethane materials. Arnette, based in Richmond, Missouri, has annual net sales of nearly $20 million.
